Fannie Mae Allows Lease Back of Foreclosures

Updated: December 07, 2009

This is a proactive step to allow individuals and families to get back on their feet. While the lease back program solves a large problem for the homeowner - A roof over their head - It does not address other credit problems that the consumer faces. Steven Stark, COO and General Counsel for A New Horizon Credit Counseling Services, Inc., a national credit counseling agency offered that "in order for the consumer to fully recover from his or her financial distress, leasing back the home that they formerly had owned is a wonderful first step. It prevents the homeowner from being displaced at great financial and emotional expense."

The underlying reason for these homeowners to be in default stems from a host of credit problems resulting in an unmanageable debt situation. Homeowners may be living outside of their means in addition to carrying too much credit card debt. Consequently, they are unable to pay their bills and, in turn, they default on their mortgage. This new program may help them get back on the right track financially.

Individuals and families may enroll in a reputable Credit Counseling Services Program and get professional advice from certified credit counselors who will properly asses their financial needs. Firms who will take a candid and honest look at a realistic budget based on their situations and advise them what programs or services best fit their needs. In this way the lender, Fannie Mae and Freddie Mac, will now have afiscally educated renter who is now in control of their finances. This ultimately will lead to these renters becoming responsible candidates for home ownership in the future.

Featured Research
  • The Contact Center Conquers the Cloud

    Contact Centers have come a long way over the past few decades. Learn how this important asset has evolved into the cutting-edge offerings of today. more

  • The New SMB Phone Systems Comparison Guide

    Does your small or medium-size business need a new phone system? Then you're in luck! Our new, updated comparison guide helps you cut through superfluous information and narrow down your list of solution providers. Get the latest data on phone system features, pricing, and performance metrics in an easy-to-use format. more

  • Contact Center Software on a Budget

    Although contact center software is necessary for a modern contact center, it can be outrageously expensive. Many companies find that their budget bloats during the implementation process. more

  • How UC Can Help Your Business Survive the Holidays

    The holiday season is filled with frenzy and excitement for businesses and consumers alike. Consumers prepare gift lists, compare brands and prices, and begin shopping with a vigor that is not present most other times of the year. For many businesses, the holiday season accounts for a large profit bump at the end of each year, and companies strive to exceed their goals and keep customers happy during this rush late in the year. more

  • [Infographic] Switching Phone Systems

    There are a lot of possible reasons you might want to switch to a new phone system. The old one might cost too much or be too troublesome to operate and maintain. It might not be flexible enough. It might not be reliable enough. Or it just might not have the kinds of features and capabilities that you need in today’s competitive business climate. more